In recent years, the environment surrounding the automobile industry has changed drastically. The rise of ride-hailing services and ride-sharing markets is about to change consumer awareness of cars, and global vehicle sales have been declining in recent years. In this context, the goal of the EV market is not simply to replace gasoline-powered vehicles but to enhance consumer convenience in a smarter way that matches the changing lifestyles of consumers. For example, companies promoting EVs are also working on automated driving, which constitutes the background of the trend.
The environment surrounding the EV market is currently dominated by the US ZEV regulation, the European CO2 regulation, and the Chinese NEV regulation on a global level, and the Chinese new energy vehicle (NEV) market, in particular, is gaining momentum and is expected to lead the global EV market. In recent years, carbon neutrality has become a global trend, and China announced its goal of peaking CO2 emissions by 2030 and achieving carbon neutrality by 2060.
The European Commission also published a proposal for a battery regulation in December 2020, which focuses on the electrification of the European automotive sector, carbon-neutral energy storage, and a sustainable battery value chain, which are key elements in the European growth strategy. Though it has the main goal of protecting the global environment, the key is how to ensure its economic viability. Since it will have a significant impact on existing industries, it is crucial to make effective policies. Therefore, the carbon-neutral strategy is not an easy one to implement.
Despite the chaotic global situation, the development of the industry is not stopping but accelerating. In July 2021, the European Commission set a new target of reducing CO2 emissions from new cars by 100% by 2035. The demand for EV batteries is increasing rapidly on a global scale and the automotive industry is about to embody one of the largest industrial transformations of the 21st century.
